In today’s briefing:
- Seven & I Sale of Sogo Seibu Moves Closer
- Reason for the Declining Concentration of June AGM Dates in Japan Is Likely Mixed
- INPEX (1605) | The Cheapest Oil Stock in the World
- Mani Inc (7730 JP): Q2 Result Exceeds Expectation Aided by Demand Recovery; FY22 Guidance Reiterated
Seven & I Sale of Sogo Seibu Moves Closer
- Initial reports suggest that Fortress Investment, part of the Softbank group of funds, is now the frontrunner in negotiations to acquire Sogo Seibu department stores from Seven & I.
- Reports suggest Fortress is already in discussions with privately owned retailer Yodobashi Camera to take over management of the chain’s better stores, beginning with Seibu Ikebukuro.
- The loss of ¥500 billion or so in turnover won’t be missed not will the ¥8.8 billion losses but activist investors won’t stop there.
Reason for the Declining Concentration of June AGM Dates in Japan Is Likely Mixed
- While we want to believe that “increased awareness of corporate governance has led to downward trend in the concentration of AGM dates,” in reality they were spread over 3 days.
- The use of the platform for electronic exercise of voting rights has made progress since it was included in the listing criteria for the prime market.
- The provision of convocation notices in English has not made much progress since it was not specifically stated in the Corporate Governance Code, which was included in the listing criteria.
INPEX (1605) | The Cheapest Oil Stock in the World
- Oil prices have had a good run, and so have oil stocks, but INPEX can still double from here
- High oil prices and rising production will generate strong operating cash flow growth
- Total shareholder returns will be close to 10% this year, meanwhile the valuation languishes at 0.6x P/B, way below global peers
Mani Inc (7730 JP): Q2 Result Exceeds Expectation Aided by Demand Recovery; FY22 Guidance Reiterated
- Mani Inc (7730 JP) reported Q2FY22 revenue ahead of guidance, mainly driven by demand recovery in the surgical segment and positive effect of foreign exchange. However, profitability declined year-over-year.
- Despite revenue beat in H1FY22, management reiterated FY22 guidance due to geographical risk. Outlook seems to be uncertain for China and India, which together contribute 33% of total revenue.
- Mani shares plunged 20% since I published bearish note on the company in January 2022. Investors should avoid Mani due to its uncertain revenue outlook and deteriorating profitability in short-term.
Before it’s here, it’s on Smartkarma
